BRIDGE Housing is partnering with TCC Family Health to develop Anaheim & Walnut, which will bring 88 affordable homes along with a community health and wellness center to Long Beach, California. U.S. Bancorp Community Development Corp. is providing $24.8 million in low-income housing tax credit equity as well as New Markets Tax Credit equity and loans.

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Heading into 2022, there was one giant unknown hanging over the affordable housing finance markets—the Build Back Better legislation.

While some advocates had high hopes the bill would pass in 2021, the legislation was still with the Senate at press time. Sen. Joe Manchin (D-W.Va.) dealt a blow to Build Back Better shortly before Christmas, saying he would not support the legislation. Discussions continued at the start of the year.

The bill could bring a historic investment in affordable housing, including expanding the important low-income housing tax credit (LIHTC), housing voucher, and public housing programs.

“My expectation is there’s still going to be a considerable amount of capital flowing toward affordable housing,” says Paul Weissman, senior managing director and head of affordable housing production at Lument. “The big elephant in the room is what parts of the Build Back Better plan are going to pass. If the 50% test is reduced to 25%, I think everybody is going to be extremely busy and very active. We’ll probably see something close to twice as many bond deals if that happens.”

Maria Barry, national executive, community development banking, at Bank of America is also eyeing an overall increase in bond executions this year.

“We anticipate more 4% tax credit deals given the fixed floor and the potential of the 50% test moving to 25%,” she says.

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